Question

Carla Vista Inc. uses the average cost formula in a perpetual inventory system.
(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)

Jun 1		Beginning inventory		25 units @ $18 per unit
Jun 5		Purchase		100 units @ $20 per unit
Jun 8		Sale		70 units
Jun 9		Purchase		80 units @ 20.41 per unit
Jun 10		Sale		25 units
Jun 22		Sale		40 units

Total cost of goods sold for the month of June is

$2690.40.

$2737.20.

$2677.20.

$2688.67.

Answer 1

Correct answer :- $2677.20

Detail Working for your easy understanding

Average Method- Carla Vista
Date	Cost of Goods Available for sale	Cost of Goods Sold	Ending Inventory
	Units	Rate	Amount	Units	Rate	Amount	Units	Rate	Amount
1-Jun	25	$18.00	$450.00				25	$18.00	$450.00
5-Jun	100	$20.00	$2,000.00				125	19.60	$2,450.00
8-Jun				70	$19.60	$1,372.00	55	19.60	$1,078.00
9-Jun	80	$20.41	$1,632.80				135	20.08	$2,710.80
10-Jun				25	$20.08	$502.00	110	20.08	$2,208.80
22-Jun				40	$20.08	$803.20	70	20.08	$1,405.60
Total				135		2677.2